Managerial Economics - 29

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Question Managerial economics generally refers to the integration of economic theory with business
Correct Answer Practice

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Question Every nation’s resources which are used to produce the quantities of goods and services that would be required to satisfy all its citizen’s wants are
Correct Answer insufficient

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Question Managerial economics is also understood to refer to
Correct Answer applied economics

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Question The type economic problem is
Correct Answer Universal

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Question The act of making goods and services is called
Correct Answer production

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Question The act of using goods and services to satisfy wants is called
Correct Answer Consumption

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Question The things that are produced by factors of production are called
Correct Answer Commodities

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Question The concept of just distribution of national product is a
Correct Answer normative

True/False
Question A firm under perfect competition is a price maker
Correct Answer False

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Question When demand and supply rise and fall in the same proportion, the equilibrium price changes.
Correct Answer False

True/False
Question Market means a particular area where buyers and sellers meet
Correct Answer False

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Question Goods which are completely divisible and to them the principle of exclusion applies in full measure are
Correct Answer Pure private goods

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Question Market system of economy is characterized by consumer’s
Correct Answer sovereignty

True/False
Question In case of a proprietary firm the liability of the proprietor is limited
Correct Answer False

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Question Macro – economics provides an exploration to the functioning of an economy in
Correct Answer general

True/False
Question The subject matter of macro – economics includes the theory of income and employment at an individual level
Correct Answer False

Match The Following
Question Correct Answer
Dual prices Two different prices
Inflation Deficit financing
P.D.S. Essential commodities
R.B.I. General and selective credit control measures
The consumers’ Protection Act 1986 Right to information

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Question Depreciation is the value caused by the continuous use of a capital asset is
Correct Answer loss

True/False
Question Accounting profit takes in to account opportunity cost.
Correct Answer False

True/False
Question According to Prof Knight, profit is the reward for uncertainty bearing.
Correct Answer True

True/False
Question According to J.B. Clark, profit is the reward paid to the entrepreneur for dynamism.
Correct Answer True

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Question Complementary goods are demanded
Correct Answer jointly

Match The Following
Question Correct Answer
Cross demand is the change in the quantity demanded of a given commodity in response to the Change in the price of anothercommodity
Incase there were no changes in the quantity of food sold even when its price had fallen we would know that Demand was entirely inelastic
The elasticity of demand for product will be higher The more available are substitutes for that product
The law of demand indicates Relationship between the price of a commodity and the quantity Demanded
The law of demand states When price falls demand rises

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Question As per the law marginal product becomes negative when total product
Correct Answer falls

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Question The law of diminishing returns is applicable to agriculture provided the state of technology is given and
Correct Answer constant

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Question Under the system of dual prices adopted by the Government for essential goods, the weaker sections of the community are supplied those goods through fair price shops which are
Correct Answer fair

Select The Blank
Question Quantitative credit control measures such as ________ operations, change in the bank rate, and changes in the ________ ratios
Correct Answer open market
Correct Answer statutory reserve

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Question AVC is the per unit variable cost of
Correct Answer production

True/False
Question Given the price, if the cost of production of a commodity decreases because of the use of improved technique of production, there will be increase in supply.
Correct Answer True

True/False
Question The laws of returns to scale explain the behavior of output in response to changes in scale.
Correct Answer True

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Question An Industry
Correct Answer Is a group of firms , All firms dealing in the same line of business , The ownership and management of each firm is different

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Question Dumping
Correct Answer It is possible in the case of Monopoly Market , Selling same good at higher price in home market and lower at price in the international market , It is encourage with a view to promote the exports

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Question Under perfect competition, ________ is determined by the interaction of total ________ and total supply in the market
Correct Answer price
Correct Answer demand

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Question Advantages of Cost-Benefit Analysis
Correct Answer It aims at maximization of social welfare , In following this principle, the problem of infinite target value does not arise , It shows the measures necessary for attaining maximum net wealth

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Question Effective Demand
Correct Answer Determine the level of income and output in an economy , Is total expenditure is equal to total income in an economy , Study of aggregate demand and aggregate supply

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Question According to Prof. Ackley, “________ economics deals with economic affairs in the large it concerns the ________ of economic life”.
Correct Answer macro
Correct Answer overall dimensions

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Question Different types of business organizations are;
Correct Answer Private sector. , Public sector. , Joint sector.

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Question Distinction between private sector and public sector is determined
Correct Answer On the basis of economic system , On the basis of motive , On the basis of principle of pricing

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Question Methods of Demand forecasting for new Products are:
Correct Answer Product life Cycle Analysis , Test Marketing , Evolutionary Approach
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Question Index numbers may broadly be classified as:
Correct Answer Price indices , Quantity Indices , Special purpose indices

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Question Economics is a ________ , which studies human behaviour as a relationship between ________ , which have alternative uses.
Correct Answer science
Correct Answer ends and scarce means

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Question The production function is the name given to the ________ between the rates of ________ of productive services and rate of output of a product
Correct Answer relationship
Correct Answer input

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Question Internal economies are those advantages of large- scale ________ , which accrue to a ________ on account of its superior techniques and management
Correct Answer production
Correct Answer firm

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Question Elasticity of supply may be defined as the ratio of the percentage ________ or the ________ change in quantity supplied to the percentage or proportionate change in Price.
Correct Answer proportionate
Correct Answer change

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Question Costs may be classified as : (a) ________ , including material costs, wage cost and interest cost (b) ________ , including costs of advertising and (c) other costs, including insurance ch
Correct Answer Production costs
Correct Answer Selling costs